US Airways Pushing Hard for American Airlines Merger: Report

By Avi Salzman

Despite being lampooned by the CEO of American-Airlines-parent AMR (AAMRQ) as small potatoes, U.S. Airways (LCC) is trying hard to merge with the airline, the Wall Street Journal reported.

US Airways has been speaking to creditors and union advisers connected to the bankrupt airline, trying to convince them that a merger would create cost savings and possibly save union workers from having to accept big cuts, the Journal says.

AMR has said it wants to exit bankruptcy as an independent company, and the company’s CEO even ridiculed the idea of a US Airways deal a couple of months ago, calling it “a small company very strategically limited, I would argue.”

But the Journal reports that AMR’s creditors and union reps have been “receptive” to the merger idea.

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There are 29 comments

APRIL 3, 2012 6:20 P.M.

LBTPEN wrote:

i dont think so NONE of our unions would even think of merging with these guys they all know that the employees of american DO NOT WANT US AIR EVER!!!

APRIL 3, 2012 6:33 P.M.

joe wrote:

LBTPEN: It is more than evident from how well your negotiations have gone that your unions are enamored with current management (you?). As an outsider, American management has always come across as arrogant fools who think the industry revolves around them. Thank you for not shaking my world view.

APRIL 3, 2012 6:44 P.M.

Anonymous wrote:

At least Parker knows how to run an airline instead of pouring
money down the black hole of a Regional affiliate.

APRIL 3, 2012 6:46 P.M.

Kurt wrote:

Despite what you think of LCC, they know how to run an airline. AMR on the other hand knows how to run an airline into the ground. You choose who you would work for

APRIL 3, 2012 6:53 P.M.

Michael wrote:

I don't think the Big D having their headquarters airline go to US Air.

APRIL 3, 2012 9:47 P.M.

Anonymous wrote:

If amr CEOs are against a merger then it's probable good for the employees!

APRIL 3, 2012 9:59 P.M.

Sky Watcher wrote:

Why would any AA employee want to get involved with US Airways and their dysfunctional labor situation. AA has its issues, but US has never even fully merged its operation. East vs. West...what a mess. Can you imagine AA flight attendants BEng stapled to the bottom of an East/West list? Would they be allowed to use the food bank? How about AA pilots at the bottom missing out on flying the new planes? Can't picture this happening at all.

APRIL 3, 2012 11:07 P.M.

Joe T wrote:

Parker may be making writing checks he can't cash. He can talk to AA creditors all he wants, but until he is willing to get his own ducks in a row, this so-called merger is a non-starter. Parker's airline may be desperate to find a partner, but if AA is smart, AA won't dance. US is a mess any way you slice it.

APRIL 4, 2012 1:10 A.M.

Sally Smith wrote:

Yeah right. Will AMR labor become the "Midwest" group? I guess 3 camps are better than 2, East vs. West.

APRIL 4, 2012 10:38 A.M.

MC wrote:

JoeT said "if AA is smart, AA won’t dance"

well there you go, AA management is NOT smart and has been known to make mostly boneheaded decisions for the past 10 decades and then blame labor for their messes.

with that in mind, wouldn't it be best to say that this merger is about 95% bound to happen?

APRIL 4, 2012 10:52 A.M.

Kalduck wrote:

As a 24 year employee of AA the only way iI would welcome a merger with USAir if all of AAs management was FIRED.

APRIL 4, 2012 11:09 A.M.

T.W.A wrote:

what goes around comes around TWA employees at the bottom of the seniority list at AA. Now AA emplyees at the bottom of the seniority list at US Air. How sweet =)

APRIL 4, 2012 12:05 P.M.

Mark wrote:

I agree with TWA's post. It would be poetic justice to see the pilots of AA stapled to the bottom of the combined list.

APRIL 4, 2012 12:10 P.M.

W. Henry wrote:

Mr. Horton is spot on. US Air brings nothing to the table. I believe that a merger would be a disaster for both companies. Let AA continue Ch. 11 reorg, get those labor costs down, modernize the fleet and they will have a fighting chance in the next few years.

APRIL 4, 2012 12:50 P.M.

insanity wrote:

How must a merger sound to an AA flight attendant or pilot? They'd have to be crazy to go for this, as US Airways is still basically two airlines from its last merger with America West. I can see it now, the AA people all get the bottom of the seniority list and therefore the worst pay, routes, etc.

APRIL 4, 2012 4:00 P.M.

Johnny Vegas wrote:

Well, well, well, so Doug Parker thinks he can finally pull off a successful merger. America West and US Air is strike one. Labor groups at these airlines have never been fully integrated. Making a hostile play for Delta while in bankruptcy was strike two. Delta slapped Doug down pretty quickly and came through leaner and meaner. Will American be strike three or will he finally pull it off? My money is on American.

APRIL 4, 2012 9:09 P.M.

knucklebuster wrote:

As a former TWA employee of 25 years , and now 11 years at AA, I just hope everything comes together for all of the employees, who gave so much to help AA in the early years. As I can re-call, myself and about 85,000 other employees gave ruffly about $16,000.00 a year back to AA in wages and benefits, for the last eight years, you do the math......How NICE it has been to be PART-TIME.....for the last eleven years,and oh I almost forgot my loss of 20 years seniority........Like TWA says "WHAT GOES AROUND......COMES AROUND.

APRIL 4, 2012 9:31 P.M.

TheEdge wrote:

Hey TWA, at least give a little thanks for AA bringing you on the payroll to feed your families and get you beer money. Don't forget the flight benefits to visit your wife and kids in the house that you pay for in another city/state that you make here. Some gratitude is in order and you keep company seniority to bid before AA employees for those much coveted Christmas and Summer VC days....but I digress.....An AA/US Airways merger is a bad idea for everyone, but if it did happen, I would be glad to have a job in these tough times and not tinkle on the leg of the Man!

APRIL 5, 2012 1:55 A.M.

Occam the Barber wrote:

Gluing two rocks together just makes them sink faster.

APRIL 5, 2012 2:01 A.M.

Fly Me to the Moon or Miami wrote:

Unions destroyed UAL, Delta, AA, US Air. etc. The biggest cost in airlines is labor. Management is not inept at all these companies, including UAL which is employee-owned. It is the unions that kill airlines.

JetBlue is a non-union airline and it is doing great. On June 8, 2011, JetBlue ranked 'Highest in Customer Satisfaction Among Low Cost Carriers in North America' by J.D. Power and Associates, a customer satisfaction recognition received for the seventh year in a row. JetBlue is currently ranked as 4-star low-cost carrier by Skytrax, and is the only airline in the United States to be ranked above 3 stars.

Why? No union nonsense.

APRIL 5, 2012 10:12 A.M.

dixie drifter wrote:

I'm an airline employee with over 30 yrs of experience,been through 3 mergers. The biggest mistake AMR employees can make is to take it personally. Second biggest is to think the company cares about you. The robber barons get paid regardless. Merger or stand alone,employees will lose pay,sick time vacation and work rules. To think otherwise is beyond unrealistic.Feel bad for anybody sweating their job...been there,but fortunate enough to keep my job.

APRIL 5, 2012 10:19 A.M.

dixie drifter wrote:

The unions are not to blame. The workers go out and execute the company business plan. When those poorly conceived plans fail,everybody blames the unions. The top company officers cash 7-digit buy-outs for taking the company into bankruptcy. Fact,not fiction

APRIL 5, 2012 1:16 P.M.

cocoa!! wrote:

who says that AA would be at the bottom??? america west bought us scare.......and what name do you think they would want?? AA of course! but a merger here would be a super train wreck..! i can say that i am a native AA....with 25years.. what i found...my best co-workers have been from TWA~.....the best flight attendants..... you can definitely spot.... (TWA)....the best mechanics? ....TWA...... 2 former TWA ramp workers can def do the work of 4 AA! its the truth! and even now.....they have the best attitude......when i heard about this bankruptcy, my 1st thought were of my TWA friends........i can say that living in NY with people from TWA taught me more about family than all my years at AA......you are def right.....AA is no longer innovative like the days of crandall. we were always THE leader......now we have become the spawn......i hate this has happened...& i don't wish it on anyone.....but give me a break....us scare? of course a non airline employee believing the company....blaming the unions for the problems........he has no clue...... the success for jet blue is that for 7 years they didn't pay for their airplanes....the people are happy there ......like AA used to be...... its hard when you haven't had a raise in over 8-9 years & everything has gone up! you do what you can....

APRIL 5, 2012 3:40 P.M.

The Edge wrote:

Hey Fly Me, AA unions gave up mucho dinero in 2003 and that's in the books, so we destroyed the airline by giving up salary, VC, sick days, benefit contributions, etc...Go fly to the moon, Mr. Manager!

APRIL 5, 2012 5:22 P.M.

Knucklebuster wrote:

Hey THE EDGE...I'll trade you your occupational time any day for the VACATION slots I get to bid...and oh yeah the CC time that was STRIPPED from me............

APRIL 5, 2012 5:41 P.M.

knucklebuster wrote:

Thanks cocoa!!!!!!!! As an x-TWA employee with 36 years in the industry..I appreciate your comments about the x-TWA employees. I did contract work with TWA for AA in the early 80's....and definitely knew it was a DIFFERENT breed..and to the EDGE....I know that there was many differences about the seniority when AA bought TWA.but believe me to this day I appreciate AA for supplying me and my family with a job for the last 11 years. It hasn't been easy going to work, and having it thrown in our faces.....especially when you work for many years, and then have it STRIPPED from you...try it I don't think you would like it either........

APRIL 8, 2012 9:58 A.M.

John wrote:

US Air is not is not the right exit here. may be good for US Air but not for us in AA. They tried to take over Delta but did not worked out and that conpany want to buy everything they see in the market but AMR is way out of their league period. We all are about to suffer what's next here in AMR and that's a fact. Our executives know what they are doing and will push their numbers in court and not much we can do to stop that. But we will take our chances before a take over from "that" company with a dark future. We saw all that TWA folks went thru when AA bought the air line. Be a new hire againg after 25 years (me) and many others, is not what we want. Our best bet would once out of BK to merge with a small carrier in the west like Alaska and the growing Jet Blue in the east and own the market once again. We all know how clear is Jet Blue/AA interest.

MAY 11, 2012 1:13 P.M.

Paris Burrup wrote:

You took a complicated idea and broke it down to make me want to read more. I'm pleased that you shared this fresh view. Thanks.

SEPTEMBER 5, 2012 9:27 P.M.

TWA 27 years wrote:

No one at AA would have to suffer the same theft of their seniority as TWA employees had to. The so called Union bretheren at AA have no conception of labor unity. It was the TWU that voted to take years of working peoples lives (seniority) that they could never possibly get back. And the TWU portray themselves as a legitamet Labor Union, they are a joke. AA plays the TWU like cards, and consistantly wins, with divide and conqure tactics that are elemental, if not elementary. The theft of Seniority was so egregious that the US Congress outlawed it from happening ever again.

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